Streamlined policy for non-territorial business registration simplifies family-led enterprise processes
In a significant shift towards modern governance and international standards, business registration procedures in Vietnam have undergone a series of transformative changes effective July 1, 2025. These changes, prompted by the implementation of a two-tier local administration model and provincial mergers, aim to create a more efficient, transparent, and digitally-focused business environment.
## Key Changes in Business Registration and Administration
### 1. Flexible Business Address Updates
Following the provincial mergers, companies and individual business households are not required to immediately update their registered business address. Existing licenses remain valid without modification unless other information changes. Businesses have the option to update their address, provided the new address matches the updated license, and can issue invoices reflecting the new address accordingly. Tax authorities will update the tax system to reflect new administrative boundaries, but updating the license itself is not mandatory unless other changes are made.
### 2. Electronic Identification and Personal Identification Number (PIN)
As of July 1, 2025, all businesses and organisations, including those with foreign legal representatives, must use an electronic identification account issued by the Ministry of Public Security (MPS) for administrative procedures. Individuals, household businesses, and individual entrepreneurs must use their PIN instead of the traditional tax code in all tax-related activities. This aligns with the unified identity management under the new Law on Citizen Identification (2023). Transitional arrangements are in place for those in the process of applying for an e-ID but not yet issued one.
### 3. Disclosure of Beneficial Ownership Information
Enterprises registered before July 1, 2025, must supplement their business registration details with information on ultimate beneficial owners when carrying out changes to enterprise registration. For businesses registering after July 1, 2025, providing a list of ultimate beneficial owners becomes a mandatory part of the legal dossier. These changes aim to enhance corporate transparency and align Vietnam with international standards for preventing money laundering and terrorist financing.
## Summary Table
| Change | Enterprises | Household Businesses | Cooperatives | |----------------------------------------|-------------|---------------------|--------------| | Mandatory e-ID for procedures | Yes | Yes* | Yes* | | Use of PIN instead of tax code | Yes (for tax procedures involving individuals) | Yes | Yes (for individuals) | | No mandatory address update after merger| Yes | Yes | Yes | | UBO disclosure for registration/changes| Yes | No (unless required by authority) | Refer to specific regulations |
*Household businesses and cooperatives may be subject to slightly different implementation, but the general direction applies across business types.
## Conclusion
Post-July 1, 2025, business registration procedures in Vietnam emphasize digital transformation, enhanced transparency, and flexible administration of business addresses following provincial mergers. These changes reflect Vietnam’s ongoing integration of modern governance and international anti-money laundering standards. The Business Registration Decree promotes the application of information technology and data sharing among State management agencies. Joint stock companies and limited liability companies no longer need to submit full meeting minutes when registering or reporting changes to their business details. Household business registration is now location-independent within the country, and many procedures now have a reduced handling time of only two working days. Under Vietnam's non-territorial administration policy, household businesses can apply for business registration at any commune-level office across the country. Tax collection for business locations is now done through the business household owner.
- In the new business environment, all enterprises, including those with foreign legal representatives, are mandated to use an electronic identification account issued by the Ministry of Public Security for administrative procedures.
- The implementation of the two-tier local administration model and provincial mergers in Vietnam has led to a change in requirements for companies and individual business households, allowing them the flexibility to update their registered business address without immediate necessity, as long as the new address matches the updated license.
- As part of the effort to enhance corporate transparency and align with international anti-money laundering standards, enterprises registered before July 1, 2025, must supplement their business registration details with information on ultimate beneficial owners when carrying out changes to enterprise registration, while businesses registering after July 1, 2025, will be required to provide a list of ultimate beneficial owners as part of the legal dossier.
